Lecture Business law with UCC applications (13/e): Chapter 16 - Brown, Sukys

Chapter 16 - The nature of negotiable instruments. After completing this chapter, students will be able to: State the purpose of a negotiable instrument, explain those negotiable instruments that contain a promise to pay money, explain those negotiable instruments that contain an order to pay money, differentiate among the different types of checks and money orders,...

Business Law with UCC Applications,13e The Nature of Negotiable Instruments Chapter 16 McGraw­Hill/Irwin         Copyright © 2013 by The McGraw­Hill Companies, Inc. All rights reserved Learning Objectives State the purpose of a negotiable instrument Explain those negotiable instruments that contain a promise to pay money Explain those negotiable instruments that contain an order to pay money Differentiate among the different types of checks and money orders Identify the requirements of a negotiable instrument 16­2 Learning Objectives (cont.) Explain an assignment and a negotiation of an instrument Name and describe four kinds of indorsements Identify the implied warranties related to indorsements Explain the contract that is made when people indorse negotiable instruments 10.Describe the legal effect of a forged indorsement 16­3 The Nature of Negotiable Instruments • The Essentials of Negotiable Instruments – Promise and Order Instruments – Parties to Negotiable Instruments – Requirements of Negotiable Instruments 16­4 The Nature of Negotiable Instruments • Promise and Order Instruments – Promise Instruments: Notes – Promise Instruments: Certificates of Deposit – Order Instruments: Drafts – Order Instruments: Checks 16­5 The Nature of Negotiable Instruments • Parties to Negotiable Instruments – Requirements of Negotiable Instruments 16­6 The Nature of Negotiable Instruments • Requirements of Negotiable Instruments – Written Instrument – Signature of Maker or Drawer – Unconditional Promise or Order to Pay – Fixed Amount of Money – Payable on Demand or at a Definite Time – Payable to Order or to Bearer – Dates and Controlling Words 16­7 The Nature of Negotiable Instruments • Transferring Negotiable Instruments – The Concept of Negotiability – Transferring Instruments – Negotiation by Indorsement – Obligations of Indorsers – Multiple Payees, Missing and Forged Indorsements 16­8 The Nature of Negotiable Instruments • Negotiation by Indorsement – Blank Indorsements – Special Indorsements – Restrictive Indorsements – Qualified Indorsements 16­9 The Nature of Negotiable Instruments • Obligations of Indorsers – Warranties of Indorsers – Contract of Indorsers 16­10 The Nature of Negotiable Instruments • Unauthorized or Forged Indorsements – Exceptions 16­11 ... Instruments: Drafts – Order Instruments: Checks 16? ?5 The Nature of Negotiable Instruments • Parties to Negotiable Instruments – Requirements of Negotiable Instruments 16? ?6 The Nature of Negotiable Instruments... Indorsements 16? ?8 The Nature of Negotiable Instruments • Negotiation by Indorsement – Blank Indorsements – Special Indorsements – Restrictive Indorsements – Qualified Indorsements 16? ?9 The Nature... Warranties of Indorsers – Contract of Indorsers 16? ?10 The Nature of Negotiable Instruments • Unauthorized or Forged Indorsements – Exceptions 16? ?11